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    Author(s): Donald F. Flora; Wendy J. McGinnis; Christine L. Lane
    Date: 1993
    Source: Res. Pap. PNW-RP-462. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 18 p
    Publication Series: Research Paper (RP)
    Station: Pacific Northwest Research Station
    PDF: View PDF  (974 KB)

    Description

    For as long as logs have been exported from the Pacific Northwest, they seem to have been worth more offshore than in the domestic market. Five reasons for the export premium are the inconvenience of trade, quality, extra "haul and hassle," continuity in export arrangements, and export embargoes. A large and increasing differential remains between export and domestic prices for comparable logs in high grades. Logs of lower quality do not seem to have a dual price structure, and there appears to be a declining premium for logs overall. Year-to-year fluctuations in the premium can be considerable, however, and trade policy changes typically affect the export premium more, proportionately, than they affect export volumes.

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    Citation

    Flora, Donald F.; McGinnis, Wendy J.; Lane, Christine L. 1993. The export premium: why some logs are worth more abroad. Res. Pap. PNW-RP-462. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 18 p

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    Keywords

    Markets (external), supply and demand (forest products), trade (Pacific Rim), log exports, trade embargo theory

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